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Construction Equipment Rental Market Size
Construction Equipment Rental Market size surpassed USD 130 billion in 2022 and is anticipated to register 4% CAGR from 2023 to 2032, resulting from the high purchasing cost of new construction equipment.
Renting is gaining popularity among contractors since on-site maintenance, repair, and replacement provisions are now included in rental agreements, which helps businesses reduce expenditures, maintenance expenses, and repair costs. Equipment rental firms are leveraging potential business opportunities by expanding their firms through acquisitions or partnerships to broaden their global reach and by strategically incorporating technical upgrades into their fleet.
| Report Attributes | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 130 billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 4% |
| 2032 Value Projection: | USD 225 billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 250 |
| Tables, Charts & Figures: | 255 |
| Segments covered: | Product and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Additionally, the emerging trend of mass migration of people from rural to urban areas in the Middle East region has accelerated the improvement of infrastructure amenities. The GCC's urbanization rate is set to rise from 85% in 2022 to 90% by 2050. Furthermore, renting equipment is found to lower carbon emissions by 30 to 60% during the life of the equipment compared to ownership. The advent of electrified and miniaturized machinery emphasizes the trend of sustainability, which is likely to boost market revenue by 2032.
Lack of skilled labor and operators to impede the industry growth
The boom in the construction sector is resulting in an immediate surge in the demand for highly trained labor, which may slow down the construction equipment rental market expansion. However, businesses are increasingly investing in advanced technologies, including AI and industrial robotics and are also implementing strategies to train their staff in order to promote productivity, which is likely to raise the number of skilled personnel in the business scenario.
Construction Equipment Rental Market Analysis
The industry size from the material handling & cranes segment accounted for USD 15 billion in 2022, due to growing need for handling bulk materials impelled by rapid industrialization. Furthermore, major investments toward the integration of modern technologies and significant efforts by firms to enhance their product portfolios are expected to drive the market development. For instance, CanLift Equipment Ltd., a material handling manufacturer, expanded its product line by adding nine new aerial lift machines from XCMG, a leading construction manufacturing company.
The Europe construction equipment rental market is projected to capture 25% of the overall share by 2032, owing to the recovering construction business with major and small-scale commercial and residential advancements. The soaring emphasis of construction firms on establishing long-term partnership projects with equipment rental, design and consulting firms, along with government initiatives for infrastructure improvement, is likely to boost regional profits. In April 2022, the EU launched the Climate-Neutral and Smart Cities Mission with the goal of providing 100 climate-neutral and smart cities by 2030.
Construction Equipment Rental Market Share
Some of the leading companies operating in the construction equipment rental space are
- Caterpillar Inc.
- Loxam Group
- H&E Equipment Services
- Al Faris Equipment Rental
- Hinkel Equipment Rental Associates
- Aktio Corporation
- Boels Rental
- Kanamoto Co. Ltd.
- United Rentals, Inc.
These organizations engage in strategic actions, including acquisitions, collaborations, and service portfolio enlargements to consolidate their industry standing. In September 2022, H&E Equipment Services, a leading integrated equipment firm, announced the acquisition of Illinois-based One Source Equipment Rental. The deal supported the corporation in extending its geographic footprint.
Impact of COVID-19 Pandemic
The COVID-19 outbreak negatively impacted the global business since government-enforced lockdowns to combat the spread of the disease shut down all transportation systems, disrupting supply chains. Due to the suspension of all construction-related operations, several construction enterprises experienced a decrease in earnings. However, declining COVID cases and the resumption of operations across industries are driving product penetration. Moreover, numerous enterprises are investing in advanced technologies or digitization to innovate construction methods and leverage new opportunities, which is poised to stimulate industry progression in the post-COVID scenario.
This market research report on construction equipment rental includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD from 2018 to 2032 for the following segments:
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Market, By Component
- Earthmoving & roadbuilding equipment
- Backhoe
- Excavators
- Loaders
- Compaction Equipment
- Others
- Material handling & cranes
- Storage & Handling Equipment
- Engineered Systems
- Industrial Trucks
- Bulk Material Handling Equipment
- Concrete equipment
- Concrete Pumps
- Crushers
- Transit Mixer
- Asphalt Pavers
- Batching Plants
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Latin America
- Brazil
- Mexico
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
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